WHAT LIES AHEAD : NEAR-TERM PICTURE
Indian stock market bulls consolidated their position with the markets making all-time highs but with tremendous volatility driven by October F&O expiry. The positive domestic cues, apart from corporate earnings, led the sectorspecific movements and thereby market movement. The government’s plan to inject Rs 2.11 lakh crore for public sector banks (PSBs) buoyed PSB stocks so much that the stocks jumped between 10-40% in intra-day trade. Further, anti-dumping duty on stainless steel imports lifted steel stocks in intra-day trade. as a result, banking, metal and power sectors helped markets sustain their peal levels. Broader markets remained more or less in line with the benchmark indices.
Technically, Nifty has closed at all-time high levels with intra-day volatile session on October 26. Nifty corrected up to 38.2% retracement level of the prior upward rally and bounced back to close in the green. Thereby, the upside rally has continued for the fourth consecutive session with rising volumes and the 14-period RSI at 69 depicting big momentum. On a weekly basis, the markets are heading upwards yet again after a breather of one week and hence, going forward, we hold medium term resistance at 10550-10650 levels, above 10350 on a closing basis. If markets reverse for correction, we hold 10300-10265 as supports on an immediate basis, followed by 10240-10210.
The Indian Volatility Index (VIX), a gauge for market’s short term expectation of volatility, decreased by 1.11% and reached 11.63. Nifty November Futures closed at 10,357.25 on Thursday at a premium of 22.55 points over spot closing of 10,334.70. The Nifty Put Call ratio (PCR) for November series stood around 1.13. On the options front for the November series, maximum Put OI is at 10,000 strike, followed by 10,200, while maximum Call OI is at 10,500, followed by 10,400 strike. The top five stocks for November series whose prices were up along with OI up were PVR, Adani Power, Colgate Palmolive, Just Dial and Jubilant Food. The top five stocks whose prices moved down along with OI up were Nestle India, Page Industries, Mindtree, Coal India and BEML.